India turns to Latin America, Africa for oil after Hormuz disruption
Indian refiners are boosting crude imports from Latin America and Africa after Middle East supplies were disrupted by the conflict in the Strait of Hormuz, reshaping global oil flows.
Indian refiners are turning to Latin American and African crude after Middle East supplies were disrupted by the ongoing conflict in the Strait of Hormuz, according to trade data.
India, the world's third-largest oil importer, traditionally sourced most of its crude from the nearby Middle East. However, since the war broke out at the end of February, shipping through the strategic Strait of Hormuz has been restricted. In April and May, Indian refiners significantly increased imports from Venezuela, Brazil, Angola and Nigeria to fill the gap, while continuing to buy Russian oil, preliminary data from Kpler shows. Last month, India skipped purchases from Iraq as exports were halted.
This shift in sourcing highlights the vulnerability of global oil supply chains to geopolitical disruptions. For traders, the rerouting of crude flows can lead to wider price differentials between regional benchmarks and increased volatility in crude oil futures. Traders can monitor these price movements on NowPrice's live commodities dashboard. The disruption also underscores the importance of alternative supply routes and the potential for sustained changes in trade patterns if the conflict persists.
Looking ahead, market participants will watch for any escalation in the Middle East that could further tighten supply, as well as the response from OPEC+ producers. Data on Indian import volumes in the coming months will provide clues on how quickly supply chains can adapt. The ability of Latin American and African producers to maintain increased output will also be a key factor in balancing the global market.